Backdated PIP has taken me over the £6000 limit

Tompark77

I am getting UC on LCWWRA. I have also recently had a backdated PIP award that took me over the £6000 savings limit, which is supposed to mean benefits will be reduced. Citizens advice said 'it will affect it, but only after 12 months'. Is this right? So after 12 months, will I be expected to put a note on my journal every time my balance goes up or down??

I just phoned DWP who said 'If a payment goes into your account from PIP, has no effect on UC'. But the DWP website says that the overall bank balance DOES affect UC entitlement. Am I supposed to subtract any money that has ever come from PIP when I declare savings?

Very confused.

Kimmy87

Citizens Advice were partially correct.

For UC purposes, for 12 months the backdated PIP is excluded from your capital.

After 12 months that money is no longer excluded.

If at that point you have over £6000 then you need to report the amount of capital regularly.

poppy123456

PIP isn’t means tested so other income doesn’t affect it. If you have any money left over at the end of the period it’s paid for then it will be treated as capital.

Tompark77

Thanks Kimmy, so the person at the DWP didn't know what he was talking about! After 12 months, how often do I need to declare my savings? Are they automatically reading bank accounts yet?

poppy123456

The issue here is that you didn't speak to anyone from DWP. When ringing any DWP department you are speaking to someone from a call centre. These people have very little knowledge in benefits, other than to read from a screen in front of them. You need to be extremely cautious when ringing them for any benefits advice.

No, they do not automatically check bank accounts. If you have capital of more than the allowed amount you must report the changes yourself. If you have access to a journal, this can be done by logging into that and reporting a change. Then click "money, savings and investments"